Which is correct regarding value-of-service pricing?
A) the model is used to determine the lower limit of freight rates
B) the model considers the supply side of the transportation pricing function
C) the value of the product is considered to be irrelevant in the determination of the freight rate
D) the model considers the ability of the commodity to bear a charge

Question

Quizplus · Accepted Answer

Value-of-service pricing is based on the value of the product being transported and how much the shipper is willing to pay, rather than solely on the cost of the transportation service. It considers the perceived value of the service to the customer and the ability of the commodity to bear a charge, rather than focusing on the supply side or setting lower limits on freight rates.

Which Is Correct Regarding Value-Of-Service Pricing